INTEGRATED REPORT 2017 - reports.capgemini.com · INTEGRATED REPORT 2017 3 — STATEMENT — —...

INTEGRATED REPORT 2017

People matter, results count.

3INTEGRATED REPORT 2017

— STATEMENT —

— Welcome to Capgemini’s first

Integrated Report

T his year, for the first time, we release digitally and in print, an Integrated Report aligned with the <IR> Framework as published by the International

Integrated Reporting Council.

It is a key communication intended for all our stakeholders to explain who we are at Capgemini: a technology-enabled business transformation company serving global clients and a leading responsible company, using our expertise for positive impact.

Confident about the future, we believe that financial and non-financial performance are both critical to creating sustainable value for all.

We would be delighted to gather your comments at [email protected]

Hubert Giraud People Management and Transformation

Rosemary Stark Sales

Paul Hermelin Chairman and CEO

Christine Hodgson Corporate Social Responsibility

On the coverMathieu Merlet BriandOur cloud, are in the #air, 3/6, 2017Collage of micro-perforated prints on mirror115 × 5 × 109cm

This work is part of a series of six pieces made for the “Environnement” exhibition in Paris, in 2017. To create the work, the artist searched for the word “air” on Google Images, Instagram, Tumblr and Pinterest. With this search, by recycling and compiling thousands of image fragments, the artist evokes the storage of data in the cloud. This series paraphrases this new contemporary “air” that surrounds us.

The artist Mathieu Merlet Briand is a young French artist whose work offers a topical response to the new challenges of the post-digital era. After learning how to write code, he worked with engineers to develop his own programming tools in the form of algorithms. He condenses massive volumes of data collected from the web by using keywords to create image compilations, or “abstractions”. Through his work, he explores the way we use the internet, big data and the cloud in today’s society – themes that align perfectly with the challenges tackled by Capgemini.

5INTEGRATED REPORT 2017

ABOUT US

— 6-7 —Capgemini at a glance

— 8-11 —Conversation with Paul Hermelin

— 12-13 —Market trends and our priorities

— 14-15 —Value creation model

— 16-17 —Governance

— 18-19 —Highlights and key figures

KEY TOPICS

— 20-21 —Ecosystem and Materiality

— 22-25 —Partnering with leading clients

— 26-29 —Committed to people

— 30-31 —Ensuring data protection and cybersecurity

— 32-33 —Uncompromising on ethics and compliance

— 34-37 —Contributing to a better world

ADDITIONAL INFORMATION

— 38-39 —Our connections

— Sum

mary

Discover the digital version of our 2017 reports: reports.capgemini.com/2017/en

The Annual Report highlights our ambition and strategy, features the main activities of the year, and provides interviews and key updates across areas of business.

The Integrated Report describes how the Group's strategy, governance, and organization create lasting value for Capgemini and its stakeholders.

The Registration Document supplies financial analysts, institutional investors and individual shareholders with complete legal, business, financial, and accounting information.

— Connect with us

More resourcesBusiness: capgemini.comFinancial: investors.capgemini.comCareers: capgemini.com/careersInsights & News: capgemini.com/insights-and-newsCSR: capgemini.com/corporate-responsibility

ANNUAL REPORT 2017


INTEGRATED REPORT2017


REGISTRATION DOCUMENTANNUAL FINANCIAL REPORT2017


7

— AT A GLANCE —

Driven by the conviction that the business value of technology comes from and through people

Enabling clients to realize their business ambitions through an array of services from strategy to operations

Key service offers 2017 full yearresults

Strong sectorial expertise with dedicated offers

Global, entrepreneurialand multicultural

At the forefront of innovation for our clients

Delivering solid and sustainable performance

We provide unparalleled opportunities to spur innovation through our Applied

Innovation Exchange, a network of 16 centers located throughout the world.

7 founding values

Architectsof Positive Futures

€12.8bnrevenue

11.7%operating margin

Countries where theGroup operates

Applied InnovationExchange locations

We leverage a global ecosystem of partners, including high-profile technology players and

specialized startups.

at the heart of everything we do

Honesty

Boldness

Trust

Freedom

Fun

Modesty

Team spirit

We publish industry-recognized studies on the latest digital trends, notably through our Digital Transformation Institute, a network

of dedicated research centers in India, the UK, and the US.

We share and discuss our business insights with industry peers through Expert Connect,

our online community with more than 1,000 active Capgemini members.

200,000employees in

40+countries from

120+nationalities

• Diversity •Building an inclusive workplace,

attracting and retaining a diverse workforce

• Digital inclusion •Using our skills to help societies address the impact

of the digital and automation revolution

• Environmental sustainability •Minimizing our environmental impacts,

building business resilience against climate change, and supporting clients with their sustainability

challenges

— CapgeminiPeople matter, results count.

Leading expertise in consulting, technology services

and digital transformation

• Digital Strategy, Innovation & Transformation Consulting •

• Digital Manufacturing •• Digital Customer Experience •

• Insights & Data • Engineering Services •• Cloud Choice • Infrastructure Services •

• Application Development & Maintenance •• Testing • Automation •

• Business & Platform Services •• Cybersecurity •

• Consumer Products & Retail, Distribution & Transportation •

• Energy, Utilities & Chemicals •• Financial Services •

• Manufacturing, Automotive & Life Sciences •• Public Sector •

• Telecommunications, Media & Entertainment •

€1.1bn Free cash flow

CAPGEMINI8 9INTEGRATED REPORT 2017

— CONVERSATION — — CONVERSATION —

Claire Sauvanaud › So, the pace of change has accelerated and some industries are incurring massive transformation. In financial services we are seeing telcos and retail getting into that industry. The shared-service economy is spread-ing. How do we at Capgemini make sure our of-fers are relevant and we keep bringing innova-tion to our clients?

Paul Hermelin › Claire, you are just right. Histo-rically, clients were in a well-defined environment and now what they ask is a combination of reliabil-ity (always) and innovation, and innovation comes from technological partners but may also come from startups, you speak of financial services or blockchain. As a company, we have to integrate

— Conversation with Paul Hermelin

In a conversation with three Capgemini colleagues from around the globe, Chairman and CEO Paul Hermelin replies to questions about value creation and rallying the company around core values.

Claire Sauvanaud, Account executive AXA — Aparna Herur, Lead Solution Architect — Ville Kurki, Sales Idean & Paul Hermelin, Chairman and CEO

“As a company, we have to integrate all the innovation and incorporate it into solutions and platforms, and that’s what I think creates the excitement for our people – being the meeting point of reliability and innovation.”

all the innovation and incorporate it into solutions and platforms, and that’s what I think creates the excitement for our people – being the meeting point of reliability and innovation.

Aparna Herur › Paul, you have always talked about Capgemini being different because of our entrepreneurial culture. Now that we see a larger number of startups around the world, and young people coming out of education with very different expectations from companies, how do we ensure that we still win this war for talent?

Paul Hermelin › That’s a more complex question. I have some admiration for young people who want to start their own business so why would I suggest that they start their career with us? First, we are proud of doing difficult things for demanding cli-ents and there’s always something to learn when you do difficult things for demanding clients. So, they will come and they will join a company which has a strong tradition of delivery and innovation and they will learn a lot. Some of them will pursue their career outside and we should stay connected with them and invest in alumni relationships, but let’s keep the Group as a place where you learn and you focus on what I have defined as “difficult things”.

Paul Hermelin Chairman and Chief Executive Officer


— CONVERSATION — — CONVERSATION —

Ville Kurki › And how do you see us maintaining one Capgemini culture and what unites us glob-ally under one ambition?

Paul Hermelin › First, the Group has always ac-

cepted cultural diversity, provided we align it with the values that bring us together. Historically, we had technologists and consultants. Now we have creative people (you are one of them) and we have data scientists, so we have to add new cultures, and my gut feeling is that it will be client passion that will bring them together, and all of us rallying on some ethical values and our raison d’être, just to show what is the Group’s future, what is the value that we want to deliver to our clients.

Ville Kurki › So, we have been expanding re-cently with multiple acquisitions to the portfolio reach, namely for example Idean, where I joined the Capgemini Group. How do you see this area evolving and the next steps to create value for our customers and people?

Paul Hermelin › Our portfolio offerings have to

evolve extremely quickly. Some of these innova-tions will be born within the Group and we have to be ready to welcome innovation from outside of the Group, some with startups that will remain partners, some with acquisition, and Idean is the case where it’s a new culture that joined the Group, a beautiful culture, by the way a multicultural cul-ture, and here we should be ready to accept a cultural difference provided we have one rally-ing motto, which is servicing the client in respect

to our values, and we have done that with 40, 50 years now of acquisition, while we respected many cultures, and I think that’s what makes the Group quite unique.

Claire Sauvanaud › Our clients, our employees, our partners in the ecosystem in which we oper-ate, are asking us to act and think responsibly. How does Capgemini address this expectation?

Paul Hermelin › It’s a dimension that people

tend to underestimate. The Group lives in osmo-sis with the rest of the world. It has a workforce of 200,000 people, but do you know that last year we recruited 52,000 people? So we keep breath-ing, onboarding people and some of our people leave. So our teams are a reflection of society and we need to show that we have value creation that speaks to society, which is why we have completely redefined our social objectives: one focus on diver-sity, of course, one on environment sustainability, and the last one (which not everybody would un-derstand) is what we call digital inclusion.

Claire Sauvanaud, Account executive AXA

Ville Kurki, Sales Idean

Aparna Herur, Lead Solution Architect

“Historically, we had technologists and consultants. Now we have creative people and data scientists, so we have to add new cultures, and my gut feeling is that it will be client passion that will bring them together.”

Aparna Herur › Paul, since the launch of the renewed corporate social responsibility strat-egy in 2017, CSR for Capgemini is about being Architects of Positive Futures. What does this exactly mean?

Paul Hermelin › I just mentioned diversity, that’s clear. Diversity is not only gender diversity. It’s also welcoming people from a lot of different ethnic origins and having a diverse representation of tal-ents. Environmental sustainability, that goes with-out saying, but it’s better to mention it because the IT, all our servers, computers, play a role in global warming, so we have to mitigate their con-sequences and how we manage that. But, more in-terestingly, that new concept of digital inclusion. Usually people think negatively of it. They speak of the digital divide and how to overcome the digital divide, and how to help people notably from parts of society that are less educated to have access to the power of digital technology and to master that digital power. We are trying to work on that so we will focus on that segment of the popula-tion and help them to leverage all the power of digital culture and of the digital tools that are in use every day.

The three of you represent three dimensions of our challenges. The customer challenge, our people challenge, and the digital transformation challenge. That will represent more and more the complex value creation that the Group wants to reach and dominate, and that will be well repre-sented with this new Integrated Report.


Watch the conversation: reports.capgemini.com/2017


achieve new levels of efficiency, flexibility, and speed. We see industries invest in digital intelli-gence to understand and predict their businesses and use digital enablers to create tangible solution models orientated around the whole value chain. This combines a true “end-to-end customer experi-ence”, an industrial revolution, and renewed busi-ness platforms, all powered by new, cloud-centric infrastructure.

INFORMATION TECHNOLOGY BECOMES MAINSTREAM — IT will continue to be a critical foundation.

Significant opportunities exist to refresh IT with new capabilities, such as flexibility with the cloud and efficiency enhanced by automation.

We now also see a wider addressable market beyond the “traditional” area of chief information officers. New enterprise buyers are emerging, in particular:• Chief marketing officers, as they are increasingly

responsible for end-to-end customer experience. • Chief operating officers, as IT becomes embedded

in products and services across industries. • Manufacturing executives, who now focus heavily

on enabling the “Industry 4.0” delivery model as well as efficiency, intelligent production, and con-stant product customization.

EFFECTIVENESS AND INNOVATION — Effectiveness and innovation in digital and IT

are key for clients. Consulting and IT services pro-viders have supported their clients through several technological waves and have gone through suc-cessive large transformations over the past few decades such as the shift from mainframes to cli-ent-server architecture, the move to software pack-ages, followed by mobile applications, big data and the cloud in more recent years. We are in a market where we must adapt, and that has always been the exciting challenge in our industry.

Historically, consulting and IT services providers have been leveraged by companies for two main reasons: • One is effectiveness, quality and cost reduction,

with a focus on outsourcing. Traditional consult-ing and IT services providers give a commitment to clients on quality, time to deliver, and efficiency gains, hence the importance of productivity, relent-less cost management and automation.

• The second main reason is innovation: consulting and IT services companies help clients imagine what’s possible with innovation. As the landscape continues to evolve rapidly, with waves of techno-logical disruption, new possibilities are opening up for clients. These include artificial intelligence, advances in analytics, the cloud, and blockchain.

DIGITAL TRANSFORMATION— When it comes to the digital transformation

of business, the future is now. Companies are using digital technologies and advanced analytics to unlock new sources of sustainable growth and

WE LEVERAGE OUR PASSION FOR CLIENTS — We help our customers attain their objectives

in terms of effectiveness and innovation. Our conviction is that the purpose of a transformation program should not be digital for digital’s sake. It should be driven by specific business needs and designed with the optimal architecture to best capture the value from innovation.

We partner with clients to drive end-to-end transformation enabled by our capabilities, which range from innovation, consulting, and systems integration to operations.

Moreover, as a global strategic partner, we believe that in-depth industry knowledge is criti-cal. We continue to invest and strengthen our industry content in our selected focus areas.

WE EXPAND OUR PORTFOLIO ANDSTRENGTHEN OUR GLOBAL PRESENCE— Our current focus is the evolution of our

offerings towards digital and cloud, which are driv-ing significant business and technological change at our clients. We are pursuing targeted acquisi-tions to reinforce our capabilities and accelerate the transformation of our portfolio of offerings.

We continue to invest in cybersecurity as we see strong traction for our offerings, geared towards securing our clients’ infrastructure and systems.

We enhance our portfolio in close collaboration with our key partners to anticipate market evolutions.

We are accelerating our efforts in artificial intel-ligence. We are developing and deploying AI-based and machine learning solutions for our clients, including top-tier investment banks, consumer products and automotive companies. We are also investing in our own AI-based platform to stay

Consulting and IT services companies provide business and technological expertise to support organizations in the complexity of creating, managing, and optimizing their IT and business performance.

The Group is ideally positioned to capitalize on these market megatrends with the expertise to help our clients transform at scale.

— Succeeding in a rapidly evolving market

— Capgemini, A Leader for Leaders

— MARKET TRENDS — — OUR PRIORITIES —

ahead of the curve and will expand on our solid community of more than 10,000 skilled resources in AI and automation.

We will also further strengthen our footprint in North America, the largest and most innovative IT market in the world, whilst pursuing our growth in Europe, our historical market. We remain ambi-tious about our expansion in other parts of the world, in particular Asia Pacific and Latin America, which represent fast growing markets.

WE INVEST IN HIGHLY SKILLEDENTREPRENEURIAL TALENT— Capgemini’s spirit of conquest and passion

for entrepreneurship on behalf of our clients have always been key for our employees. In 2017, we launched an unprecedented investment to upgrade our capabilities, increasing our training efforts by 34%, which translated into the addition of 2.2 mil-lion training hours. We will continue to invest in our people, attract and retain the best people in the industry, and offer leadership opportunities to our diverse, emerging talents.

WE COMMIT TO BEING A LEADING RESPONSIBLE COMPANY— Corporate social responsibility is a business

imperative, important in all our decision making. We focus our CSR strategy on three core pillars:• Diversity: creating a diverse talent pool and a

working environment in which they can thrive.• Digital inclusion: helping societies take advan-

tage of the digital and automation revolution. • Environmental sustainability: reducing our carbon

impact and helping our clients to reduce theirs.

— VALUE CREATION MODEL —

— Capgemini, human, passionate and innovative

Using experts, operational excellence, innovative assets, and added-value partnerships, we provide our clients with global business and technological solutions. This creates tangible value and contributes to their sustainable performance. This also drives benefits for all our stakeholders.

We mobilize resources1 We create value We add value We share value1

Shareholders• A 23.4% share price increase

• €438m returned to shareholders: €262m dividend, €176m share buyback

Society• €3.4m in social development initiatives

• 15% reduction in carbon footprint per employee vs 2015

Clients• We serve 73% of the Forbes Global

200 public companies

• Our top 10 clients represent 15% of revenue

• 95% of revenue comes from existing clients

• 4.2/5: client satisfaction level through regular assessment of our clients' expecta-tions defined by contractual deliverables

Business partnersMore than 50% of our bookings are

made alongside our partners

People• 52,000+ recruits, including

40% young graduates

• 8.7m hours of training to 96%+ of employees

We attract the best young and experienced talent and provide aspirational development

paths. We enhance and challenge their expertise through collaborative methods and knowledge.

We propose an array of services from strategy to

operations.

We create and deliver technology-enabled

business transformations that fit our clients’ needs.

We bring deep industry knowledge that ensures we are up to speed with the challenges our clients

are facing.

We consistently adapt our agile, decentralized and competitive organization for effectiveness.

We drive competitiveness with a seamless delivery by

one team, anytime, anywhere.

We harness innovation through our

Applied Innovation Exchange and our Digital Transformation Institute.

We build the most relevant strategic and emerging partnerships.

By drawing on our seven founding values and leveraging our entrepreneurial culture:

Collaborating with and for our clients:

Human200,000 talented employees

in 40+ countries

Social and relationshipA worldwide ecosystem of diverse

business and academic partners

Intellectual• Innovations from strategic and

emerging partnerships

• Our Collaborative Business ExperienceTM approach to

working with clients

Financial• €1.1bn free cash flow

generation

• €238m cash invested in four digital & innovation acquisitions

• A strong balance sheet, with a low net debt (€1.2bn)

Industrial• Global delivery model

• Resource management tool

• Global Quality Management System

We enable our clients to achieve innovation and competitiveness.

Using our experience, we aim to deliver sustainable value to all stakeholders and the communities in which we live and operate. 1 2017 figures

We are passionate about clients. They are at the heart

of our business, with long-lasting collaboration, trust and

mutual respect.

The governance bodies are responsible for the stewardship of the Company, overseeing its conduct and affairs to create sustainable value for the benefit of its shareholders and all other stakeholders.

— A balanced governance

BOARD COMPOSITION

— Capgemini’s governance benefits from an active and diligent Board of Directors, independent in its composition and with a collective approach to its operation. Its members have diverse and complementary personalities both from a professional and cultural standpoint, true to the Group’s history and values.

GOVERNANCE BODIES

Audit & Risk Committee

86% 80%5

Group Management

Ethics & Governance Committee

Group Executive CommitteeStructures and follows the implementation of strategies concerning the Group’s operating structure, the choice of priorities, production

rules and organization.

Group Executive BoardDefines the broad strategies and actions to be submitted to the Group Executive

Committee for approval and ensures their implementation by the major business units.

General ManagementComprises the Chief Executive Officer and the two Chief Operating Officers.

100% 50%4

6 4

5 8

Strategy & Investment Committee

100% 50%17

Compensation Committee

92% 100%15

“Capgemini enjoys a balanced and efficient governance, tailored to the Group’s specific requirements and current challenges.”


Pierre Pringuet Lead Independent Director, Chairman of the Ethics & Governance Committee

62%

14+2 7 years

62 years

25%

2

1

Independent Directors1

Board of Directors2

Diversity3

Average length of office

Average age

Internationalization

Employee representation

57%

43%

Board of Directors

Attendance Attendance

Attendance Attendance

MembersMembers

Members

Members Members

Independence Independence

Independence Independence

Meetings Meetings

Meetings Meetings

Foreign nationality

Directors representing employees

Director representing employee shareholders

16

95% 62%1

Attendance Independence

Executive sessions

Meetings

10 4

NB: all figures are up to date as of December 31, 2017.1 Directors representing employees and employee shareholders are not taken into account in calculating the independence rate, in accordance with the provisions of the AFEP-MEDEF Code.2 Fourteen directors are elected by the shareholders; the two directors representing employees are appointed in accordance with the employee representation system.3 The two directors representing employees are not taken into account in calculating this percentage, in accordance with Article L.225-27 of the French Commercial Code.

— GOVERNANCE —

BOARD FOCUS AREAS IN 2017

—Group strategy

and organization—

› Review of major market trends and technology disruptions

› Strategic priorities and ambitions in Digital

› Alignment of the Group’s transformation with its business ambitions

› External growth opportunities and transactions

› New CSR policy

—Corporate

governance—

› Board and committees’ composition evolution

› General Meeting preparation

› Conversion into a European company

› Board assessment

› Monitoring of dialogue withshareholders and proxy advisors

—Group performance

and activities—

› Group performance and activities

› Active management of the Group’s balance sheet and liquid assets

—Audit & risks

—

› 2016 statutory accounts

› 2016 full-year and 2017 H1 consolidated financial statements

› Risk monitoring (including risk mapping)

› Internal control and internal audit

—Management transition

—

— Mr. Paul Hermelin announced his intention to solicit his renewal

as Chairman and CEO in the context of the 2018 General Meeting, with a view

to preparing to transition out of this role of CEO around mid-term.

› Review of internal and external talents

› Appointment of two Chief Operating Officers from January 1, 2018

› Monitoring of the management transition

—Compensation

—

› Compensation of the Chairman and CEO

› Compensation of the newly appointed COOs

› Performance shares and share grants

› New employee share-ownership plan

Variable 40%

Fixed 60%

Overall structure

Annual 50%

Variable 100%

Long term 50%

Variable 70% / Fixed 30%

2017 target for compensation structure of the Chairman and Chief Executive Officer

BOARD REFRESHMENT

— Since 2012, eight new Directors have joined the Board, representing 50% of the current Board members as of December 31, 2017.

100% Independents1

66% Women3 56 Years average age

2 Representing employeesProfile of the incoming Directors


CAPGEMINI18 INTEGRATED REPORT 2017

— HIGHLIGHTS —

Landmarks in digital and transformation

C apgemini has become the global IT pro-vider for McDonald’s restaurants and digi-tal capabilities. McDonald’s has launched

an ambitious strategy to transform its business through digital innovation and it has turned to Capgemini in order to accelerate innovation and transform the restaurant experience.

Orange Bank has emerged as a brand new player in the mobile payment space, notably thanks to a platform built in partnership with Capgemini and a relationship that was critical to the launch of the bank.

Building on a relationship with Zurich Insurance Group spanning more than 30 years, Capgemini recently completed two new projects, one deliv-ering a completely revamped claims experience in Mexico and the other optimizing straight-through claims for customers in Germany.

MOVE50, employees celebrate 50 years of Capgemini

I n five decades, Capgemini has grown from a small French company to a global leader. To cele-

brate our 50th anniversary in 2017, employees in 43 countries took part in MOVE50 – a CSR campaign that embodied our values of boldness, team spirit, and fun. The results: 415,696km of sponsored runs, cycles and walks, €100,000 given to educational projects, and more than 298,000 shares, likes and retweets on social media.

One Planet Academy

I n partnership with the WWF in India, Capgemini has designed and developed One Planet

Academy, the first, one-of-a-kind digital platform that offers students and teachers in India interac-tive and engaging educational content about sus-tainability and the environment. The platform is already used at 3,600 schools, reaching more than 500,000 students. Discover more at: academy.wwfindia.org

EXPANDING OUR OFFER THROUGH SMART ACQUISITIONSWe continue to evolve our portfolio of services in the digital and innovation space, acquiring Itelios, Idean, TCube and LyonsCG in 2017.

Throughout 2017, we strove to improve the services we offer our clients, the lives of our employees, and the communities in which we operate. Here are just a few of the highlights.

19

— KEY FIGURES —

CAGR1: +6.1%

+320 BPs2

+137%

+52%

2013 2014 2015 2016 2017

10.610.111.9 12.5 12.8

15.2% decrease

in CO2 emissions per head

2015 2.99tCO2e

2017 2.54tCO2e

38,490employees are shareholders

RevenueBillions of euros

Greenhouse gas emissions reduction

Diversity%

Employee Shareholding

Organic Free Cash Flow Millions of euros

668455

2013 2014 2015 2016 2017

815

1,071 1,080

1 CAGR: Compound Annual Growth Rate2 BPs: Basis Points

Share Price of CapgeminiIn Euros, compared to CAC40 index

Operating Margin%

We are recognized for our ethics

OVER THE PAST FIVE YEARS, WE HAVE DELIVERED A STRONG AND SUSTAINED FINANCIAL PERFORMANCE

WE HAVE STRENGTHENED OUR GREATEST ASSET: OUR PEOPLE

OUR BUSINESS GROWTH HAS BEEN ACHIEVED MINDFUL OF OUR ENVIRONMENTAL IMPACT AND RESPECTING OUR VALUES

31.4% female employees+1.1pt vs 2016

20%women in executive leadership teams+5pt vs 2016

2013 2014 2015 2016 2017

9.28.510.6

11.5 11.7

— The growth of our human capital and steady improvement in our diversity, have contributed to delivering sustained top-line momentum.

This business growth has resulted in a steadily improving profitability, up to 11.7%, enabling us to maintain a balance between the return to shareholders and the execution of our digital acquisition program.

This overall performance was recog-nized by the market through a strong improvement in stock valuation.

In delivering this positive financial per-formance, we have respected our values and delivered a significant reduction in our carbon footprint.

— 2017 in key highlights & figures

Headcount EvolutionThousands of employees

143131

2013 2014 2015 2016 2017

181 193 200

Capgemini: +213% CAC 40: +46%

31/12/12 31/12/13 31/12/14 31/12/15 31/12/16 31/12/17

28/02/18

80

100

120

60

40

20


— Constructively interacting with our stakeholders

— For us, stakeholders are people, groups and organizations with whom we have a common agenda: enabling the digital and technological transformation to deliver reliable and sustainable performance, by dealing responsibly with econom-ic, social, and environmental issues.

— Capgemini’s success depends on our ability to work constructively with our stakeholders, to im-prove outcomes for all.

— Capgemini relies on the knowledge and insight that stakeholders can bring to support robust busi-ness decisions. Thus, we are better able to provide the services our clients need, and act as a respon-sible business.

— ECOSYSTEM —

— Focusing on our key topics

— In line with the <IR> Framework published by the IIRC, key topics are economic, social and environmental issues that have an effect on the or-ganization’s ability to create value. This is determined by considering their effect on the organization’s strategy, governance, performance or prospects.

— MATERIALITY —

— The aim of the materiality analysis is to ensure Capgemini addresses these topics. As part of this process, in 2014 Capgemini carried out its first ma-teriality analysis.

— In 2017, we completed two steps of a struc-tured three-phase approach: • we represented Capgemini’s full ecosystem and

prioritized our stakeholders by our level of en-gagement with them;

• next, by questioning senior managers represen-tative of the Group’s leadership, we identified and selected the relevant issues having an im-pact on our ability to create long-term value.

— In 2018, we will gather insights from a global panel of stakeholders, which will drive a strategic dialogue between internal and external view-points and strengthen our materiality analysis.

We develop our view and our val-ue proposition on these key topics in the coming pages.

CapgeminiA Leader for Leaders

Uncompromisingon ethics and compliance

• Values & ethics • • Human rights • • Compliance •

Ensuring data protectionand cybersecurity

• Cybersecurity • • Data privacy & security •

Achieving profitable and sustainable growth

• Resilience & agility • • Return to shareholders •

Contributing toa better world

• Responsible procurement • • Contribution to local development •

• Digital inclusion • • Reduction of carbon footprint •

• Climate change resilience •

Partnering with leading clients

• Client satisfaction & collaboration • • Industry & business expertise •

• Innovation • • Leveraging new social

& market trends •

Committed to people

• People engagement & well-being • • Diversity •

• Inclusive environment •• Talent attraction & development •

Degree of stakeholder engagement

Stakeholder category

Ad hoc relations

Long-term relations / Strong & reciprocal influence

Legend:

Local communities,

Clients

Allian

ces, Partners, Suppliers

Regulators, Legislators, EU

Think tanks, Local authorities,Academics, Thought leaders,

Shar

eho

lder

sEmployees, International & local

work councils

Pote

ntial c

lients,

Client e

cosystems

Standardization bodiesM

arket shap

ers, Industry and professional bodies,

International organizations (OECD, etc.)Citizens, NGOs, Media,

ESG

inde

xes

Banks

, Fin

anci

al a

naly

sts,

Rat

ing

agen

cies

,

Talent pool, Families, Alumni

Exploring Capgemini’secosystem

Clients

Society and Public Authorities

People

Fina

ncia

l Com

mun

ity

Business P

artners


— CHAMPIONNING INDUSTRIES CHALLENGES —

PARTNERING WITH LEADING CLIENTS

— GLOBAL INDUSTRY CHALLENGES —

Volatile, uncertain and complex, these are the conditions under which a modern company must operate and survive. The status quo is being challenged, new entrants are leading us to reconsider previous assumptions, and continuous innovation is needed to stay ahead.

Co-creating value in an age of rapid change

— Continuous innovation is needed to stay ahead

in an increasingly complex world

RISKS AND OPPORTUNITIES The main risks and opportunities our industry is facing related to

clients and innovation include in particular our ability to adapt our

services portfolio, remain cost competitive, and to avoid major

service delivery failure, data protection and cybersecurity issues, and

significant contract liabilities. Major risks and opportunities, and their

management are described in the Registration Document and in the

digital version of the Integrated Report.

of concept, experimenting with a new technol-ogy without clearly defining at the start what the return on investment of that technology should be. Innovation should always start with the business, and technology follow as an enabler.

FINDING THE BEST TALENT— Finding the best talent for innovation is cru-

cial. In recent research conducted by LinkedIn and Capgemini, nearly all organizations recognized that there is a digital talent gap.

It comes as no surprise that business partners with both the technical and soft digital skills, such as customer-centricity and passion for learning, are most in demand today.

STRENGTHENING LONG-TERM PARTNERSHIPS— In the consulting and IT services industry, the

more providers anticipate, understand and know our clients’ needs, the better they can support them to implement the transformation required by business and technological disruption.

Long-term relationships with clients and in-depth knowledge of their needs will help them to feel free and confident to travel unexplored paths, and to drive real value for themselves and for their cus-tomers.

This will enable them to reinvent themselves, har-nessing agility, innovation, and the engagement of their people and their customers to stay ahead.

UNCOVERING THE BEST ANGLE— The digital revolution has granted us access to

options that are immediate, competitive and more open than ever before. This brings a new challenge of how to maintain a comprehensive understand-ing of new and emerging technologies. A multitude of startups are also bringing in new ideas and ways of working. With so many possibilities out there, it is safe to say our clients are suffering from choice-overload. So, how do we find the right angle with innovation?

Innovation is successful when it is used to drive business value: create new opportunities, disrupt value chains, and optimize operations and ecosys-tems. The right balance between embracing new ways of thinking and ensuring successful delivery should always be found.

A key objective is to avoid becoming a victim of the “shiny new object syndrome”, where compa-nies start creating proof of concept after proof

ARTIFICIAL INTELLIGENCE: CUTTING THROUGH THE HYPE AND FOG

“AI will be the most debated, invested in, and disruptive business technology trend over the coming years. Organizations must cut through the fog and understand how to apply this innovation and become a truly intelligent enterprise.”

Lanny Cohen, Chief Innovation Officer, Capgemini.

30%of young professionals would switch jobs if their organization lacked an innovation culture, according to The Digital Transformation Review2.

profitability uplift for companies with strong transformation manage-ment intensity, according to a 2017 study by Capgemini and MIT Sloan.

26%

62%of firms say their culture is the number one hurdle to digital transformation (survey of 340 organizations by the Capgemini Digital Transformation Institute1).

“At Capgemini, we have a passion for our clients: engaging and delighting

our clients underpins everything we do. We

work with technology. However, people are at

the heart of our success.”

Rosemary Stark Sales

GLOBAL TRENDS

1 The Digital Transformation Institute is Capgemini’s research center for digital technology. It has dedicated research centers in India, the United Kingdom and the United States. 2 Capgemini Consulting’s half-year review.


— CAPGEMINI’S VALUE PROPOSITION —

framework that supports success. Innovation is fun and interesting; however,

applied innovation is valuable. The AIE’s frame-work provides the necessary discipline and rigor that is needed to innovate effectively and rapidly. It helps organizations create a culture that encour-ages, rewards, and promotes innovation. It enables organizations to discover, devise, deploy, and sus-tain new ideas, insights, solutions, and value. It leverages the latest suites of tools and methods, accelerators, and design thinking.

COMBINING MULTIPLE TALENTS FOR INNOVATION

— Our experience shows that a key to innovating successfully is finding the right people. A multi-dis-ciplinary ecosystem is needed to drive applied inno-vation. There must be a collaborative, co-creative approach to build prototypes, proofs-of-concept, and demonstrate business value. Ecosystems thrive on the energy that comes from sharing ideas. To create this energy you need to combine different types of people, partners, and even ecosystems. The AIE links our global curated ecosystem of inno-vation experts, partners, academia, start-ups, third-party R&D, venture funds, and private equity firms with our clients. With a framework for action and a high-performance engagement experience, our clients, partners, and Capgemini talent all benefit from this unique experience.

This approach facilitates creativity and new ways of thinking. For example: how can blockchain be used for retail supply chain management? How can AI be used to predict how autonomous vehicles and driven vehicles will react together? How can we predict when a component in a nuclear plant is likely to fail?

— Capgemini’s Applied Innovation

Exchange

A t Capgemini, the client takes center stage. We craft customer-centered solu-tions, leveraging a complex ecosystem of

partners, innovators, incubators, think tanks, start-ups, and scale-ups1, to make sure we bring our cli-ents what they need. Our objective is not only to spark new ideas on how to improve ways of doing business, but to guide clients along the way and be a partner for their success. One way of doing this is through the Applied Innovation Exchange (AIE), our global innovation platform.

PUSHING THE LIMITS— In 2017, the AIE hosted more than 1,300 client

engagements to explore technological solutions to business challenges. At these sessions, we worked with large corporations and startups to push the limits of all aspects of innovation. The role and impact of the AIE is often different depending on the type of product, service, and business model. However, one consistent factor is the rigorous

Partnering for innovation through our global ecosystem of experts.

25

— CAPGEMINI’S SOLUTION —

The idea behind the application is to inform car owners of any repairs that need to be carried out. How does it work in practice?

Jean-Pierre Fernandes, Business Manager, After Sales Department, PSA Groupe ›

When a client

drops off their car at a body shop, our technicians carry out tests and an estimate of repairs, and they record a video of their inspection, as well. The report is then sent to the client by email or SMS. The client can watch the video to understand bet-ter the repair work to be carried out, and can give their consent.

How was this application designed?

Arnaud Angotti, Application Manager, IT Department, PSA Groupe › The challenge was to produce quickly an application that could be used by clients. We worked with Capgemini using the MVP (Minimum Viable Product) method, with user feedback at every phase of development. The key factors to success were the strong involvement of our users and the rapid integration of their re-quested changes, with field tests conducted dur-ing the day and changes implemented the follow-ing day. The result: it took us less than four months to launch!

— Groupe PSA reinvents the after-sale experience

thanks to mobile

In partnership with Capgemini, Groupe PSA (Peugeot Citroën) has enriched its client experience: a mobile application that transformed after-sales was developed and deployed among mechanics… and in less than four months!

So, users were involved in the development of the application?

Pierre-Denis Autric, Culture Hacker*, Capgemini › The Groupe PSA teams presented us with a great challenge: to create a new experience between their network of mechanics and clients. We brought together technicians, professional teams, and IT experts to describe the process, explored ergonomic solutions, and prepared the deploy-ment. Early feedback allowed for the addition of new functions and implementation at scale. In the end, we achieved a transformation in record time, with glowing feedback from the clients of Groupe PSA, and new challenges already being prepared by Groupe PSA for Capgemini to address.

How has the application impacted commercial relations?

Jean-Denis Bigot, After Sales Director, PSA Retail › After just one year, this application has already proven to be a real success: it’s been de-ployed at 160 sites, more than 100,000 videos have been sent to and viewed by our clients, and client satisfaction has been greatly improved, as demon-strated by the ranking of PSA Retail sites. In light of this strong success, and having taken onboard the valuable insights from our field tests, we are now launching a new version of the application, in partnership with Capgemini.

With the help of Capgemini, Groupe PSA produced a mobile app to enrich the after-sales experience, and they developed it in just four months using continuous user-feedback and MVP methods.

Working session at our Applied Innovation Exchange in New York.

16Applied Innovation Exchange centers are maintained around the world by Capgemini, granting our clients unmatched access to a diverse community of people and skills to fuel their innovation.

1,300+client engagements were run by Capgemini’s Applied Innovation Exchange in 2017.

Watch the interview: reports.capgemini.com/2017

* One who specializes in reframing problems to drive innovative thinking by questioning content and context.

1 Scale-up is a startup with a proven business model, strong growth and international ambitions.



COMMITTED TO PEOPLE

73%of CEOs reported being concerned about the availability of key skills, according to a 2015 Harvard Business Review survey.

of employees believe their skillset will become redundant in the next five years, according to a Capgemini joint report with LinkedIn (June-July 2017).

38%

75%of the worldwide workforce is expected to be made up of millennials by 2025. Capgemini is already living the future with a workforce made up of 70% millennials.

— GLOBAL INDUSTRY CHALLENGES —

Automation is impacting skill requirements and tal-ent sourcing, with a gradual shift of the capabilities needs.

EMPLOYER REPUTATION IS KEY— Leaders must focus on strengthening their

employer reputation, by providing an innovative, ethical and positive environment where employees can grow and thrive.

Social media – and what employees are sharing about their workplace – is crucial. Incoming talent is more likely to trust what employees have to say than recruitment advertising.

Employer reputations ultimately depend on the consistent values and vitality of their organiza-tional cultures. Firms are beginning to realize that accountability for the employer brand experience must reside with the leadership, including the CEO.

HOT SKILLS ARE VOLATILE— Beyond technology-driven disruption, the

employee pool itself is changing dramatically. Talent markets have become as complex as tech-nology markets. The new generation of talent markets is more volatile. Companies need to revisit the social contract with their team members and provide them with a clear career path, to be able to offer relevant expertise to their clients.

Finally, well-being at work matters more and more. Adapting our work environment conditions is intrinsically part of our company’s performance.

TALENT SHORTAGE STILL LOOMS— Business requirements in our industry have

become increasingly complex. As businesses trans-form, they need to draw on highly diverse skills to deliver sustainable business results. Top per-formance today requires a combination of highly skilled expertise in specific sectors with a breadth of knowledge that spans all relevant domains.

The rapid pace of technological adoption is one key driver. As they pursue advantages offered by emerging technologies, many enterprises are expe-riencing a skills gap. Their investments are outpac-ing the labor market’s ability to provide the digital skills that will drive new strategies.

Tech demand goes vertical, with certain industries experiencing an acute need for technologically skilled team members.

As technology takes on a pivotal role in every busi-ness, individuals are expected to be able to com-municate and collaborate efficiently with non-IT departments, therefore soft skills are increasingly important.

What’s more, automation radically alters the skill-sets that are in demand, as machines begin to han-dle many routine tasks previously done by people.

“We care about the people deciding to

work with us, and we aim to provide them with

the best environment to progress and thrive.”

— Winning the battle for talent is key to future success

A magnet for the best talent

RISKS AND OPPORTUNITIES The main talent-related risks and opportunities our industry is facing relate

to attracting and retaining talent, including key executives, and managing

succession planning. Major risks and opportunities, and their management

are described in the Registration Document and in the digital version of the

Integrated Report.

Hubert Giraud People Management

and Transformation

Technology organizations face a daunting agenda: build capabilities, support client transformations, and keep systems running while protecting assets. Exceptional talent is required.

43%of the US workforce is expected to be partially or fully freelance by 2020, according to a report on Nasdaq.com. This will transform how enterprises find and deploy talent. Moreover, in 2015, millennials became the largest generation in the workforce. Their very different demands require new engagement strategies.

27

GLOBAL TRENDS



class learning organizations. We engage our learn-ers virtually, locally, and through our world-class campuses in Les Fontaines (France), Pune (India), and our regional campuses across the globe.

We support business acceleration by prioritizing the right content to the right people at the right time. We design and deploy digital-age learning content focused on our strategic areas and indus-try standards, and we organize regular events such as skill boosters, co-creation challenges, and hack-athons.

Finally, our certification program is a key element in skills development. A priority for 2017 was set-ting up an Automation Academy, which certified its first 125 graduates and enrolled over 9,000 more. In 2018, we continue to drive certification on emerging technologies and skills (artificial intel-ligence, Internet of Things, and blockchain).

RENEW OUR LEADERSHIP MODEL— Developing the capabilities and behaviors

of our Leadership Team is more important than ever. The Group’s renewed Leadership Model sets expected behaviors across six interdependent dimensions: “La Niaque”, Business Builder, Profit Shaper, People Developer, Active Connector, and Agile Player. We set all leaders a key target for developing their skills, with each of our 1,500 Vice Presidents also tasked to obtain a digital certifica-tion in 2018.

Our workspaces are being rationalized, consolidated, and enhanced under the AgileWork@Cap planning char-ter, to drive well-being, agility and in-

novation, and bring about the following benefits: y Attractiveness: the design of our new spaces tar-gets well-being at work, with natural light, green areas, comfortable furniture, “like at home” areas, and conviviality spaces. y Creativity: our spaces offer technological innova-tions, co-creation areas and intellectually stimu-lating surroundings to drive creativity. New work-places are designed to provide various layouts based on different activities, such as co-working with partners and customers, and co-design between various teams. They become a core driver of our creativity, with multiple open collab-orative spaces, agile corners, mini-auditoriums, collaborative furniture, and many meeting rooms. y Cooperation: new spaces promote information-

and knowledge-sharing, and collaboration across businesses to offer more holistic and agile solu-tions to our clients. y Agility: new workspaces are multi-form and diverse to offer environments suited to a range of activities, from conferences and meetings to focus sessions, socializing and creativity. yMobility: our workspaces are places to meet and connect. New offices become meeting facilities for employees and partners to exchange and interact physically, but also with the other global facilities of the Group and collaborators working remotely, through fully fledged virtual conferenc-ing tools.— Since 2016, 114 workplace transformation

projects have been launched. Seventy-eight have already been delivered, and when the rest come into service in 2019 they will be able to host 83,000 seats. The rest of the portfolio will be upgraded progressively.

— We are transforming our

workspaces

As working conditions evolve, so do our workplaces. In 2016 we embarked on an ambitious project to transform our traditional offices into experience-building communal spaces. We see it as a key way to attract and enable our talent.

83,000people will be able to use our new workspaces when they are operational – 78 out of 114 are up and running already, with several in key places such as New York, San Francisco, London and Mumbai.

— We aim to create a suitable environment

for every new recruit

ATTRACT THE BEST TALENT— We maintain a robust recruitment and onboard-

ing process, structured around three principles: yOur talent branding is attractive, fostering our values and our business acumen, and mirroring the Group’s performance legacy. Every recruit is assessed in terms of competencies and skills to ensure a fit with the Group’s ways of working and agile environment. yOur ambition is to hire diverse people who will develop within our teams’ ecosystems and bring their best to the most varied business environ-ments. Recruits are tracked for gender mix and all recruiters sign the Group Diversity Charter. We actively pursue our policy of employing people with disabilities. yOur employee promise is to commit to each employee to provide her or him with professional development and progression opportunities through client exposure and learning.In return, we expect each employee to develop

and keep their skills up-to-date, which maintains their employability.

DEVELOP AND RENEW EXPERTISE — As our success is achieved through the con-

tinuously renewed expertise of our people, we prioritize our people’s competency- and capability-development. We leverage our long-established Capgemini University, accredited among best-in-

Finding and nurturing the best minds has never been more essential to our success.

29


The new look for Capgemini’s New York office.

Campus Serge Kampf Les Fontaines, Gouvieux (France).

Our London office has been transformed into a creative space.

ENGAGING EMPLOYEE EXPERIENCEWe are committed to fostering a great employee experience and are leveraging Pulse surveys to understand our employees’ expectations. We’re already recognized as one of the most attractive employers in France and our CEO Paul Hermelin was featured in Glassdoor UK’s highest rated CEOs list in 2017.

Successfully on-boarding our newcomersWe never get a second chance to make a first impression. So since 2017, we have invited new French graduate hires to a seminar at our Campus Serge Kampf Les Fontaines. Over three days, we brought together 100 people with the ambition to generate emotional engagement with the Group; transmit core consultancy skills around posture, communication, and delivery; and create connections between people by cultivating fun.



ENSURING DATA PROTECTION & CYBERSECURITY

“Data protection and cybersecurity breaches are a major threat to a

company’s reputation. Our priority is to safeguard digital assets, notably against

cyberattacks and internal inadequate behavior, so we have deployed end to

end security monitoring and protection tools and services. The challenge is not only about technology, it is also about business (client trust) and employees

(protection of personal data).”data records are lost or stolen every minute, according to Symantec, a cybersecurity software company.

3,617

$2,000bnrepresents the potential global cost of cybercrime, per year, by 2019, according to Forbes.


tion. Resilience against cyberattacks is becoming a major component of corporate value for investors and all stakeholders.

How do you address these challenges to safe-guard your clients’ assets?

M.P. › We offer a privacy by design approach to our clients to ensure that their instruc-

tions regarding data protection constraints can be implemented in the services and products we offer them.

B.B. › Four years ago, Capgemini implemented a large cybersecurity and information pro-

tection (CySIP) program, which reflects our commit-ment to a high standard of data protection for the benefit of our clients and our own organization and employees. This led us to invest in new tools and technology. We have deployed worldwide em-ployee awareness and training programs to enable everyone to take accountability of the firm’s and their own personal security. Capgemini has also structured a cybersecurity offer and is increasingly engaged with our clients to ensure their cyber-security, leveraging our globally recognized SOC (Security Operations Centers) expertise. We will continue to invest.

How do you anticipate the new European GDPR and Network and Information Security (NIS) legislation? And what are the impacts for your organization?

M.P. › Capgemini articulates its GDPR ap-proach around the implementation of

the Binding Corporate Rules (BCR), which were approved by European data protection authorities back in 2016. This directs our organization to dif-fuse further data protection culture to ensure the actual implementation of the different procedures that we have defined under the BCR and which are key for compliance with the GDPR.

B.B. › The EU countries decided to boost the level of cybersecurity with the new

European NIS directive, which will demand that the largest companies reach a very high level of cybersecurity. This represents a key growth op-portunity for Capgemini and will also drive up our own cybersecurity level.

Could you describe the challenges for our cli-ents?

M.P. › First, our clients need to face enhanced expectations from their own clients who

are more and more demanding regarding the pro-cessing of their personal data. Secondly, they are expected to document further their data process-ing and compliance – which is a new requirement for many of them, especially with the introduction of the new European General Data Protection Regulation (GDPR), which comes into effect in May 2018. Thirdly, they are also expected to consider properly the legal requirements imposed by data protection legislation in their technical specifica-tions.

B.B. › In 2017, large companies incurred cyber-attacks. Our clients want to be protected

against this cyber risk. Countries are also imple-menting stringent regulation to ensure that the most critical companies set up appropriate protec-

Maria Pernas, Capgemini’s Group General Counsel, and Bernard Barbier, Capgemini’s Group Cybersecurity and Information Protection Officer, share how Capgemini addresses the challenges and seizes the opportunities related to data protection and cybersecurity.

— Secure information is integral to business trust

RISKS AND OPPORTUNITIES The main risks and opportunities our industry is facing

relate to data protection failure or cyber risk incidents, which

could result in reputational issues. Major risks and opportunities,

and their management are described in the Registration

Document and in the digital version of the Integrated Report.

GLOBAL TRENDS

Patrick Nicolet Chief Technology Officer

A challenge and an opportunity



UNCOMPROMISING ON ETHICS & COMPLIANCE

“I believe that today’s world, losing its bearings,

shaken by repeated scandals, distrusting companies and

their management, has a greater need than ever before

for ethics and for the respect of a few core values. It is therefore

up to us to stick to our values and to our principles.”

Serge Kampf Capgemini Founder

better performance by the World’s Most Ethical Companies (as classified by Ethisphere) compared to average companies in the US large-cap sector, over five years.

10.7%

86%of millennials consider it a priority to work for a business that conducts itself ethically and responsibly (according to a Bentley University study).

Recognized for the 6th consecutive year


core values have been at the heart of Capgemini’s corporate culture and all of our business dealings. They are: honesty, boldness, trust, freedom, fun, modesty, and team spirit.

The longstanding commitment to our values has shaped the Group’s reputation in the market and is a major contributor to our business performance. In addition to complying with our principles and rules, our values-based culture eases adequate decision making, and creates agile behaviors well fitted to unanticipated events that arise in complex situa-tions. It relies on the ability of our team members to do the right thing. This ethical framework now connects 200,000 team members in more than 40 countries.

STRENGTHENING OUR ADVANTAGE— Since 2010, we have structured a formal Ethics

& Compliance program to strengthen our competi-tive advantage further. It aims to create awareness among employees, enabling them to make better decisions based on honesty and integrity, with two levers: Our Code of Business Ethics helps all team members understand how to behave and act in the right way, so no one is left with doubt or unan-swered questions. And our Group Compliance pro-gram is focused on ensuring that appropriate levels of control are put in place (e.g. the Anti-corruption policy or the Competition Laws policy), so that external and internal rules are adhered to.

THROUGH A DIGITAL DYNAMIC— Our approach is highly dynamic and digitally

based, with training videos that present ethical business cases, plus an Ethics Week, an annual Ethical Culture Survey, and an ethics helpline called SpeakUp, available to everyone for guidance and to report concerns.

Like a muscle, ethics must be exercised regularly. The more you use them, the stronger they become.

TRUST IS AT THE HEART OF A SUCCESSFUL COMPANY— Globalization, shorter economic cycles, and

the surge of cyber criminality and fraud have amplified the importance of ethics and values. Reputations are now based not only on how com-panies deliver their products and services, but also on how they value relationships with stakeholders. A reputation takes years to build, but it can be lost overnight following an ethical lapse.

In a people-based industry like ours, trust is at the heart of a company’s offer, whether for its own customers or for their customers. Moreover, particularly for the young talent we attract, the line that separates their personal and professional lives can be very thin, which drives a need to talk openly about all ethical issues.

OUR VALUES-BASED CULTURE— Capgemini’s founder, Serge Kampf, believed

that sound ethics and integrity are the foundation of a profitable and sustainable business. Since the creation of the Group in 1967, ethics and our seven

Increasing focus by the media, governments, and stakeholders means no one can afford to compromise their ethics and values.

HUMAN RIGHTSCapgemini supports the 1948 Universal Declaration of Human Rights, the conventions of the International Labor Organization, and adheres to the UN Global Compact. This translates into three levels of the organization: the Ethics & Governance Committee of the Board of Directors oversees adherence to the seven values; Capgemini’s International Works Council is the official employee representative body; and our Supplier Standards of Conduct aim to cascade Capgemini’s requirements through our supply chain.

Being true to our ethics & values

— Capgemini’s values, a source of agility and differentiation

in a digital world

RISKS AND OPPORTUNITIES The main risks and opportunities our industry is facing related

to ethics and values are compliance with applicable laws, crisis

management or reputational issues. Major risks and opportunities,

and their management are described in the Registration Document

and the digital version of the Integrated Report.

GLOBAL TRENDS



CONTRIBUTING TO A BETTER WORLD

4of the top five risks currently facing humanity are environmental, according to The World Economic Forum Global Risks Report 2018.

of people on the planet still don’t have internet access, according to The State of Broadband, UN Broadband Commission for Sustainable Development, September 2017.

52%

217 yearsThe number of years it will take, at the current rate of progress, for the disparities in the pay and employment opportunities for men and women to end, according to The Global Gender Gap Report 2017, from the World Economic Forum.

— GLOBAL CHALLENGES —

that contribute to SDG achievement also makes good business sense: it provides attractive value-creation opportunities for the Information and Communications Technology sector.

CLIMATE CHANGE— According to the Global e-Sustainability Initiative

– a leading resource on best practices for achieving integrated social and environmental sustainability – the ICT sector has the potential to cut 10 times more greenhouse gases than it produces. Digital solutions can be rolled out at unprecedented speed, their reach is huge, and they increase access to goods and services in a more people-centric, affordable, and sustainable way.

At the same time, significant and growing environ-mental challenges are already having a global impact. Rapid urbanization and increased rates of consump-tion are leading to the depletion of natural resources and damage to fragile ecosystems. The impact of cli-mate change is increasingly being felt by communi-ties around the world. According to the World Bank, $158tn of physical assets - double the total annual output of the global economy - are at risk without preventative action to mitigate climate change.

INCLUSIVE WORKPLACES— In a globalized economy, the need for diver-

sity and inclusion in the workplace has become an imperative. Multinational organizations, by operat-ing in various countries, effectively make religious, gender, generational, and other types of diversity a business reality. Diversity and inclusion in the busi-ness sphere now extend to engagement, equal opportunities and human rights. Talent is an essen-tial factor for growth, competitiveness and innova-tion, and diversity is key to sourcing the relevant range of skills that will bring different perspectives into an organization and fuel creativity.

DIGITAL ACCELERATION — Digital solutions can contribute significantly

to sustainable development by transforming how we live and work. Indeed, they are indispensable to achieving all 17 United Nations Sustainable Development Goals (SDGs) and meeting more than 50% of their 169 targets.

These digital solutions will have a huge and measurably positive impact on the major dimen-sions of development: improving people’s quality of life, fostering equitable growth, and protect-ing the environment. Investing in digital solutions

Diversity and inclusive policies are good for our societies, and make good business sense, too, bringing in the best talent and the range of skills and perspectives needed to create a dynamic and innovative company.

Architects of Positive Futures

— Sustainable development, a key business

imperative for all

“We are committed to

being a leading responsible

company, using our expertise for positive impact.”

RISKS AND OPPORTUNITIES The main risks and opportunities our industry is facing

related to sustainable development are political risks and

natural disasters. Major risks and opportunities, and their

management are described in the Registration Document

and in the digital version of the Integrated Report.

Christine Hodgson Corporate Social

Responsibility

GLOBAL TRENDS

Group employees teach kids aged 8 to 14 basic coding and computing skills in France, as part of the education program “Cap sur le code”, developed by Capgemini and French local partners.



These three key objectives lie on a bedrock of employee engagement – unleashing the passion and creativity of our workforce to drive these changes throughout the organization.

2017: A YEAR OF ACHIEVEMENTS— We have already made significant progress

towards these targets. In 2017, the proportion of women in executive

leadership teams increased from 15% to 20%, a successful first move towards greater diversity in leadership. We have also begun to focus our social initiatives on digital inclusion.

In sustainability, we have already achieved a 15% reduction in carbon emissions per employee since 2015 (with 11% since 2016 alone), and launched “carbon conversations” with our clients to help them save 10 million tons of carbon emissions by 2030.

A NEW FOCUS ON DIGITAL INCLUSION— We aim to maximize our social impact through

a streamlined focus on digital inclusion, leverag-ing our specific skills and capabilities, especially for the most disadvantaged populations. For higher impact, we will work collectively with innovative partners to deliver tangible outcomes.

By focusing 80% of our social impact initiatives on digital inclusion and future skills by 2020, we will develop partnerships with global social organiza-tions, as well as other corporations and institutes. We are currently scoping a global volunteering policy and a digital-inclusion academy hub.

ACCELERATING FEMALE TALENT— In 2017, we implemented focused programs

for women identified as high-potentials, in most service lines, as well as in Finance. Three were rolled out globally: the OWL (Outstanding Women in Leadership) program, with attendees from nine countries; MAPP (Mentoring and Protégé Progression), with attendees from six countries; and the We Lead program, with attendees from Finance departments in eight countries. Both OWL and MAPP programs were run by Cloud Infrastructure Services, a business where women’s presence has been low.

DIGITAL EMPOWERMENT— Capgemini India’s National Digital Literacy

Program is dedicated to empowering commu-nities through digital, in support of the Indian Government’s National Digital Literacy Mission (NDLM), which aims to ensure there is at least one digitally literate person in every Indian household by 2020.

Capgemini has partnered with the National Association of Software and Services Companies (NASSCOM), to implement the program across India,

supporting 12 NDLM centers located in areas close to our main India offices. The centers successfully enrolled and trained 18,000 individuals in 2017.

The NDLM program aims to engage citizens from diverse social backgrounds and age groups, including the most disadvantaged, in order to reach entire communities and bridge the existing digital divide.

GOING GREEN IN INDIA— Capgemini India has successfully driven down

energy use despite the business growing. We have deployed state-of-the-art energy efficiency equip-ment (high-efficiency chillers and LED lighting), and large-scale solar installations at our Mumbai, Pune, and Chennai campuses, now generating around 2.8 million kWh of solar energy a year, the equivalent of powering around 2,600 Indian homes.

To help reduce emissions from employee com-muting, we have also promoted carpooling through the sRide mobile app across our Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and Pune offices. More than 25,000 employees have signed up, to date, making us the highest user of the sRide app among technology companies.

— Driving behavioral changes for

positive impact

We are already rolling out programs and Group policy to support diversity, digital inclusion, and sustainability. Here are some highlights from 2017.

— Our commitment to building a diverse and

sustainable future

T he goal of being “Architects of positive futures” captures our renewed social ambi-tion: to be recognized worldwide as a lead-

ing responsible company, using our expertise to bring about positive impact. Sustainability is a busi-ness imperative now at the core of everything we do, and we will effect change through our ways of working and the personal commitment of our col-leagues. We collaborate with clients and partners to build solutions that promote environmental sustainability, help societies address the impact of the digital and automation revolution, and foster inclusion in the workplace to reflect society’s rich spectrum of diversity.

A RENEWED STRATEGY— We have already set out three key objectives

with targets to achieve by 2020:• Diversity: Build an inclusive workplace and

attract and retain a diverse workforce to enable Capgemini and our employees to thrive.

• Digital Inclusion: Use our skills to help societies address the impact of the digital and automation revolution.

• Environmental Sustainability: Minimize our environmental impact, build business resilience against climate change, and support clients with their sustainability challenges.

Our mission is to use our expertise to drive positive change.

37


2020 TARGETS

25% of executive leadership to be women.

34% of our total workforce to be women.

20% reduction in carbon emissions per employee compared to 2015.

80% of our social impact initiatives to be focused on digital inclusion.

2.8mkWh of energy generated per year by the solar installations at our Bombay, Pune and Chennai campuses.

25,000+employees signed up to our Indian carpool scheme.

Architects of

PositiveFutures

Project Inhale at the Gachibowli Campus in Hyderabad.

Clearing the air towards a pollution-free future:Capgemini employees at the Gachibowli Campus in Hyderabad took part in Project Inhale, launched with TERI (The Energy and Resources Institute of India) to analyze air quality in our offices and improve it using indoor plants. The pilot project showed significant reductions in levels of CO2 and volatile organic compounds, as well as improving temperature and humidity regulation.

— OUR CONNECTIONS — — OUR CONNECTIONS —


Capgemini S.E. registered office, corporate and finan-cial headquarters 11, rue de Tilsitt 75017 Paris – France Tel.: +33 (0)1 47 54 50 00 Fax: +33 (0)1 47 54 50 35 capgemini.com

— Across the world

Serge Kampf Les Fontaines Campus

67 Route de Chantilly60270 Gouvieux – France+33 (0)3 44 62 91 00les-fontaines.com

Capgemini University

11, rue de Tilsitt75017 Paris+33 (0)1 47 54 50 00

Applied Innovation Exchange

capgemini.com/aie79 Fifth Ave. #300New York, NY 10003+1 212 314 8000

Main operations

Application Services North AmericaChicago: +1 312 395 5000

Application Services Asia PacificHong Kong: +852 9739 1362

Application Services Two(1)

Paris: +33 (0)1 49 00 40 00

Business ServicesParis: +33 (0)1 47 54 52 00

Consulting ServicesParis: +33 (0)1 49 67 30 00

Cloud Infrastructure Services Paris: +33 (0)1 57 58 51 00

Latin AmericaSão Paulo: +55 11 4196 05 00

Local Professional Services (Sogeti)Paris: +33 (0)1 58 44 55 66

Digital ServicesParis: +33 (0)1 49 67 34 47

Global sectors

Consumer Products, Retail, Distribution & TransportationChicago: +1 312 395 5000

Energy, Utilities & ChemicalsToronto: + 1 416 805 6913

Manufacturing, Automotive & Life SciencesMunich: +49 89 38 338 0

Public Sector• Public Security

Utrecht: +31 30 689 78 00• Tax services

London: +44 (0)330 588 8000

Financial ServicesNew York: +1 212 314 8229

Telecoms, Media & EntertainmentParis: +33 (0)1 49 00 20 19

Careers

capgemini.com/careers

Investor relations and financial analysts

capgemini.com/investorsVincent [email protected]+33 (0)1 47 54 50 87

Shareholders

Marine Schmitt [email protected]+33 (0)1 47 54 50 82

Media and market analysts

Sam ConnattyMedia [email protected]+44 (0) 370 904 3601

Tom MinarikMarket Analysts [email protected]+44 (0) 870 904 4053

Capgemini

Argentina (+54)Buenos Aires: 11 5297 9200

Australia (+61)Sydney: (0)2 9293 4000

Austria (+43)Vienna: (0)1 21163 0

Belgium (+32)Diegem: (0)2 708 11 11

Brazil (+55)São Paulo: 11 4196 0500

Canada (+1)Toronto: 416 365 4565Montreal: 541 989 4100

China (+86)Shanghai: 21 6182 2688

Colombia (+57)Bogota: 1 319 26 00

Czech Republic (+420)Prague: 222 803 678

Denmark (+45)Vallensbæk: 70 11 22 00

Finland (+358)Espoo: (0)9 452 651

France (+33)

Capgemini ConsultingParis: (0)1 49 67 30 00

Capgemini InstituteParis: (0)1 44 74 24 10

Application Services FranceParis: (0)1 49 67 40 00

Financial Services FranceParis: (0)1 49 00 40 00

(1) Benelux, Central Europe, France, Germany, Nordic countries, Southern Europe, United Kingdom

Management of overall project

Group Corporate Social Responsibility Department and Group Marketing and Communications Department, 11 rue de Tilsitt, 75017 Paris [email protected]

Expertise on Integrated Reporting: Consultland – Nick Landrot

Design, production & writing: WordAppeal and Studio L’Éclaireur

Artist: Mathieu Merlet Briand • mathieumerletbriand.studio

Photographers: Copyrights - All rights reserved © Pierre-Emmanuel Rastoin • © Joëlle Dollé • © Fabienne Le Loher and Benjamin Chartier • © Léa Petel and Tania Houlbert • © Vincent Dessailly • © Stéphane Remaël/La Company • © iStock by Getty Images • © Getty Images • © Shutterstock, Inc. • © Capgemini • © Zurich Insurance Group • © WWF • © Photos PSA Retail • © McDonald’s

Thanks to PSA Groupe and PSA Retail

Printed in France by Dejalink, 93240 Stains

Cloud InfrastructureServices FranceParis: (0)1 57 58 51 00

Prosodie-CapgeminiParis: (0)1 46 84 11 11

Germany (+49)Berlin: (0)30 88703-0

Guatemala (+502)Guatemala City: 2223-00 10

Hungary (+36)Budapest: 1248 40001248 4021

India (+91)Mumbai: (0)22 6755 7000

Italy (+39)Milan: 02 414931

Japan (+81)Tokyo: (0)3 6202 2150

Malaysia (+60)Kuala Lumpur: 0(3) 2181 0368

Mexico (+52)Mexico City: 55 8503 2400

Morocco (+212)Casablanca: 5 22 46 18 00

Netherlands (+31)Utrecht: 30 689 00 00

New Zealand (+64)Wellington: 4 901 5300

Norway (+47)Oslo: 24 12 80 00

Philippines (+63)Manila: 2 667 60112 667 60782 667 6155

Poland (+48)Warsaw: 22 464 70 00

Portugal (+351)Lisbon: 21 412 22 00

Romania (+40)

Bucharest: 21 209 8000

Saudi Arabia (+96)Riyadh: 11 279 5225

Singapore (+65)Singapore: 6224 6620

South Africa (+27)Cape Town: (0)79 855 5279

Spain (+34)Madrid: 91 657 70 00Barcelona: 93 495 86 00

Sweden (+46)Stockholm: (0)8 5368 5000

Switzerland (+41)Zurich: 44 560 24 00

Taiwan (+886)Taipei: 2 8758 7888

United Arab Emirates (+971)Dubai: (0)4 559 8304

United Kingdom (+44)London: (0)330 588 8000

United States (+1)New York: 212 314 8000Irving: 972 556 7000

Vietnam (+84)Hô Chi Minh City: (0)8 39 978 100

Sogeti

sogeti.com

Sogeti Corporate24, rue du Gouverneur-Général Éboué92136 Issy-les-Moulineaux – FranceTel.: +33 (0)1 58 44 55 66Fax: +33 (0)1 58 44 58 10

Sogeti France (+33)Paris: (0)1 55 00 12 00

Sogeti High Tech France (+33)Paris: (0)1 40 93 73 00

Sogeti High Tech Germany (+49)Hein-Sass-Weg 3021129 HamburgTel.: (0) 40 492937 – 0

Sogeti High Tech Spain (+34)Sogeti SpainAvenida Leonardo da Vinci, 1528906 Getafe, Madrid, EspañaTel.: 91 308 44 33

Sogeti Belgium (+32)Brussels: (0)2 538 92 92

Sogeti Denmark (+45)Vallensbæk: (0)70 23 15 05

Sogeti Finland (+358)Espoo: (0)207 463 880

Sogeti Germany (+49)Düsseldorf/Ratingen: (2102) 101-4000

Sogeti India (+91)Mumbai: (0)22 6755 7000

Sogeti Ireland (+353)Dublin: (0)1 639 0100

Sogeti Luxembourg (+352)Bertrange: (0)31 44 01

Sogeti Netherlands (+31)Vianen: (0)88 660 66 00

Sogeti Norway (+47)Oslo: (0)40 00 50 89

Sogeti Spain (+34)Barcelona: (0)93 253 01 88

Sogeti Sweden (+46)Solna: (0)8 5368 2000

Sogeti Switzerland (+41)Geneva: (0)22 879 16 50

Sogeti United Kingdom (+44)London: (0)207 014 8900

Sogeti United States (+1)Dayton (Ohio): (0)937 291 8100

www.capgemini.com

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